On November 9, 2023, LiveOne Inc (LVO, Financial), a music, entertainment, and technology platform, released its earnings report for the second fiscal quarter of 2024, revealing a mix of growth and challenges. The company reported a significant increase in revenue, but also faced a widened operating loss and a decrease in Adjusted EBITDA compared to the same period last year.
Financial Performance Overview
LiveOne Inc (LVO, Financial) experienced a notable increase in revenue, posting $28.5 million for Q2 Fiscal 2024, which represents a 21% rise from the $23.5 million reported in Q2 Fiscal 2023. This growth was primarily driven by a record $16.4 million in revenue from Slacker, marking a 29% increase, and a 24% increase in PodcastOne revenue, which reached $10.5 million.
Despite the revenue growth, the company's operating loss expanded to $2.5 million in Q2 Fiscal 2024 from an operating loss of $1.0 million in the prior year's quarter. The increase in operating loss was attributed to higher operating expenses related to transaction costs for the PodcastOne spin-out. Adjusted EBITDA* for the quarter was $2.8 million, a decrease from $4.4 million in Q2 Fiscal 2023, mainly due to settlements in the prior period.
Capital Expenditures and Corporate Actions
Capital expenditures for the quarter totaled approximately $0.7 million, driven by capitalized software costs associated with the development of LiveOne’s integrated music player. The company also highlighted its stock repurchase program, which is subject to management discretion and market conditions.
Management Commentary
"We are thrilled that the momentum in our key operating businesses continues to deliver hockey stick growth across all metrics. We expect to deliver records results in the current third quarter. In addition, the recent extension with Tesla as well as 18 new podcasts this year alone provides extraordinary confidence that Fiscal 2025 will be another record-breaking year," said Robert Ellin, CEO and Chairman of LiveOne.
Balance Sheet and Cash Flow Highlights
As of September 30, 2023, LiveOne Inc (LVO, Financial) reported cash and cash equivalents of $3.6 million, a decrease from $8.4 million as of March 31, 2023. The balance sheet also showed a total asset value of $65.4 million and total liabilities of $58.1 million. The company's net loss for the quarter was $6.5 million, resulting in a net loss per share of $0.07.
Looking Forward
LiveOne Inc (LVO, Financial) is optimistic about its future, with the CEO expressing confidence in achieving record results in the upcoming quarter and fiscal year 2025. The company's focus on new B-to-B initiatives has yielded 27 potential blue-chip partners across five verticals, which could provide substantial revenue opportunities.
Investors and analysts will be closely monitoring LiveOne Inc (LVO, Financial)'s performance in the coming quarters, as the company continues to navigate the dynamic entertainment and technology landscape.
For more detailed financial information and to listen to the earnings call, interested parties can visit the Investor Relations section of LiveOne’s website.
*Adjusted EBITDA is a non-GAAP financial measure. For a reconciliation to the most directly comparable GAAP measure, refer to the tables provided in the earnings release.
Explore the complete 8-K earnings release (here) from LiveOne Inc for further details.
